Top 10 Stock Market Movers Tuesday: Cloudflare's Big Upgrade and More

The stock market is buzzing with activity on Tuesday, with a mix of earnings reports, analyst upgrades, and sector-specific trends driving investor interest. Here are the top 10 things to watch in the stock market today, including a big cyber stock call:

1. Cloudflare Stock Upgrade: Goldman Sachs analyst Gabriela Borges upgraded Cloudflare (NET) stock to "Buy" from "Sell," citing an improving sales and marketing productivity cycle and an expected increase in cybersecurity spending following the "Salt Typhoon" Chinese hacking incident. The stock popped 6.6% to $114.77 on Monday.
2. CyberArk Stock Rises: Morgan Stanley analyst Hamza Fodderwala noted that CyberArk (CYBR) could gain from another Chinese hacking incident involving rival BeyondTrust, which could lead to increased demand for CyberArk's privileged access management solutions. CyberArk stock rose 2.2% to $340.63 on Monday.
3. Fortinet Earnings: Fortinet (FTNT) is set to report its Q4 earnings on Tuesday after the market close. The cybersecurity giant is expected to post earnings of $1.04 per share on revenue of $1.17 billion. Fortinet stock has been on a roll, up over 60% in the past year.
4. Palo Alto Networks Earnings: Palo Alto Networks (PANW) will also report its Q4 earnings on Tuesday after the market close. Analysts expect earnings of $1.64 per share on revenue of $1.44 billion. Palo Alto stock has gained over 20% in the past year.
5. CrowdStrike Earnings: CrowdStrike (CRWD) is scheduled to report its Q4 earnings on Wednesday after the market close. The cybersecurity company is expected to post earnings of $0.12 per share on revenue of $524.5 million. CrowdStrike stock has surged over 35% in the past year.
6. Microsoft Competition: Despite growing competition from cloud computing giant Microsoft, cybersecurity stocks have thrived. Microsoft aims to integrate artificial intelligence tools into its security platform, but analysts believe that the cybersecurity sector as a whole is primed for long-term growth.
7. AI in Cybersecurity: Artificial intelligence is playing a significant role in enhancing cybersecurity capabilities by improving threat detection, automating responses, and enhancing predictive analytics. Companies like Fortinet and Palo Alto Networks are at the forefront of leveraging AI to bolster their security offerings.
8. Cybersecurity Regulations: President-elect Donald Trump's return and commitment to a more inward-focused foreign policy are expected to bring new cyber threats, reduced regulations across most industrial sectors, and the possibility of business-friendly federal privacy legislation. However, the overall regulatory landscape will likely shift toward less emphasis on compliance and greater focus on safeguarding critical infrastructure and technology firms.
9. Cybersecurity Spending: According to a survey from Gartner, chief information officers say that cybersecurity is the highest priority, with roughly 80% planning to increase spending in 2024. This increased demand for cybersecurity products and services should benefit companies in the sector.
10. SASE Market: The Secure Access Service Edge (SASE) market is expected to remain robust, driven by more organizations adopting zero-trust approaches and growing numbers of enterprise applications. Companies like Zscaler (ZS) and Palo Alto Networks also sell SASE products, which support remote workers and branch offices.



In conclusion, the cybersecurity sector is poised for continued growth, driven by increased demand for cybersecurity products and services, the emergence of AI in cybersecurity, and a favorable regulatory environment. Investors should keep an eye on the top cybersecurity stocks, as well as the broader market trends, to capitalize on potential opportunities.